The Swedish government Thursday approved plans by stricken carmaker Saab to sell off part of its production plant at Trollhattan in a bid to raise badly-needed cash, according to dpa. The cabinet decision paves the way for the company to raise 255 million kroner (40 million dollars) to help Saab pay its 3,700 employees their wages and meet obligations to suppliers. A consortium of real estate investors now can take over a 50.1 per cent stake in the Trollhattan factor, which Saab will then be able to operate on a leasing basis. Production at the plant in western Sweden has virtually been stopped since April and it remained uncertain when Saab might resume making cars. A company spokeswoman told Swedish broadcaster SR that "negotiations with suppliers were continuing." But she provided no details. Earlier in the week it was learned that Saab last year lost 3.1 billion kroner, while selling just 28,282 cars. In 2008, when the company was still a subsidiary of General Motors, it had sold some 93,000 cars. In early 2010 Saab was taken over by the Dutch sports car firm Spyker Cars, since renamed Swedish Automobile. On July 4, Saab's long-term future appeared more secure after it received a 245-million-euro financial lifeline from two Chinese auto groups. Swedish Automobile said in a statement that the Chinese car distributor Pang Da and auto manufacturer Zhejiang Youngman Lotus Automobile had signed contracts agreeing to the capital injection. Production at Saab's factory in the Swedish town of Trollhattan has been at a standstill since April. The carmaker sold just 10,000 vehicles during the first quarter.
